Longi Green Energy Plans to Increase Stake in Zhongzhou Carbon Co. for RMB 300 Million in Cash

On July 11th, Longi Green Energy Technology Co., Ltd. announced plans to increase its stake in Zhongzhou Carbon Co., Ltd. through its subsidiary Zhongcarb New Materials by RMB 300 million in cash. After the capital increase, the registered capital of Zhongzhou Carbon will increase from RMB 268 million to RMB 568 million.

Zhongzhou Carbon is a well-known domestic carbon industry enterprise with a registered trademark of Black Triangle, specializing in the research and development, production, and sales of carbon products such as graphite electrodes, calcined coke, and crucibles, with an annual production capacity of 40,000 tons of carbon products, including 30,000 tons of graphite electrodes. Its products are sold throughout China and exported to Europe, America, Southeast Asia, and other countries and regions.

In May 2022, Longi Green Energy announced the acquisition of 100% equity of Zhongzhou Carbon for RMB 806 million in cash through its subsidiary Zhongcarb New Materials. The acquisition was aimed at enhancing the company's scale advantage and market competitiveness in the graphite negative electrode field, strengthening the short board of Longi Group's industrial chain, further improving the company's vertical integration supply capability and comprehensive strength in the positive and negative electrode materials of new energy, as well as improving the integrity of the chlor-alkali industry chain, enhancing the company's profitability and core competitiveness.

Within two months, Longi Green Energy has acquired Zhongzhou Carbon for RMB 806 million in cash and plans to increase its stake by RMB 300 million. This shows that Longi Green Energy is aiming to seize the new energy trend and make a big push in the new energy field. This is not only to strengthen Longi's second growth curve, achieve dual-wheel drive of the titanium and lithium industries, but also to offset the adverse impact of the weak performance of the titanium dioxide main business on the group's performance.